Wednesday, December 19, 2012

Endogenous Money Creation

It's one of my favorite blog articles...reread several times...but it's so long I actually only finished reading it to the end tonight, thanks to a slur I was given by a commenter at Economist's View (Mark A. Sadowski said I believe in voodoo). I strongly resisted many temptations to hit back with another slur (what good does that do?) and instead dug up the Steve Keen's description of endogenous money creation, the way the money supply actually works, contrary to those who believe in myths such as Fractional Reserve Banking.

This has a long history, informed by Keynes, Wicksell, and Minsky, among others, as well as Marx who is pictured at the top with a pithily pungent description of bankers (as Roving Cavaliers of Credit).